What is a 529 savings plan?

529 savings plans are flexible, tax-advantaged accounts designed specifically for education savings. You can take withdrawals from a 529 plan to pay for qualified education expenses at the elementary through high school levels, or for college-level and beyond.

Should I invest in a 529 plan or a brokerage account?

When saving for college, 529 plans and individual brokerage accounts are two popular options. A 529 plan is a tax-advantaged investment account designed specifically for education expenses. By contrast, a brokerage account is a general-purpose investment account with no specific tax benefits for education savings.

What is a private college 529 plan?

The Private College 529 Plan is a separate prepaid plan for private colleges sponsored by more than 250 private colleges. Educational institutions can offer a prepaid tuition plan but not a college savings plan. The first education savings plan was a prepaid tuition plan: the Michigan Education Trust (MET) was created in 1986.